GameStop (GME) risk factors, FY2025 10-K

Risks Related to Our Investment Policy and Investment Portfolio

1. 01The value of our investment portfolio may decline
2. 02Our investment portfolio may be concentrated in one or a few holdings, which may result in a single holding significantly impacting the value of our investment portfolio
3. 03If we acquire Bitcoin, we will be exposed to certain risks associated with Bitcoin
4. 04If we acquire U.S. Dollar-denominated stablecoins, we may be exposed to certain risks associated with such stablecoins
5. 05The Company is required to recognize losses in a particular investment for financial statement purposes even though the Company has not actually sold the security
6. 06Our failure to deal appropriately with conflicts of interest could adversely affect our businesses
7. 07If we are deemed to be an investment company under the Investment Company Act, we may be required to institute burdensome compliance requirements and our activities may be restricted
8. 08Economic, social and political conditions in the markets in which we operate could adversely affect demand for the products we sell and impact our business and financial condition
9. 09We face strong competition from multi-channel retailers, ecommerce businesses and others, which directly affects our revenue and profitability
10. 10The gaming industry has historically been cyclical and is affected by the introduction of next-generation consoles, which could negatively impact the demand for existing products
11. 11We are dependent upon the timely delivery of new and innovative products from our vendors and failure to timely obtain new product can adversely affect our sales
12. 12Technological advances in the delivery and types of video games and PC entertainment software available to consumers, as well as changes in consumer behavior related to these new technologies, have lowered and may continue to lower, our sales
13. 13Interruptions to our supply chain or the supply chain of our suppliers may adversely affect our business
14. 14An adverse trend in sales during the holiday selling season could impact our financial results
15. 15Our ability to obtain favorable terms from our suppliers and service providers may impact our financial results
16. 16Our sales of collectibles depend on trends in pop culture and, if we are unable to anticipate, identify and react to these trends, our sales and business may be adversely affected
17. 17Changes to tariff and import/export regulations may negatively impact our future financial condition and results of operations

Strategic Retail Risks

1. 18If we are unable to successfully maintain strong retail and ecommerce experiences for our customers, our sales and results of operations could adversely be impacted
2. 19If we fail to keep pace with changing industry technology and consumer preferences, we will be at a competitive disadvantage
3. 20If we are unable to successfully manage our profitability and cost reduction initiatives, our operating results could be adversely affected
4. 21An important element of our profitability initiative is to reduce our global store base. Failure to successfully transfer customers and sales from closed stores to nearby stores could adversely impact our financial results
5. 22Changes in our senior management or our inability to attract and retain qualified personnel could have a material adverse impact on our business and results of operations
6. 23Damage to our reputation could adversely affect our business and our ability to attract and retain customers and employees

Operational Risks

1. 24If we or the third parties with whom we work do not maintain the security of our information
2. 25technology systems or data (including customer, associate or Company information), such failure could negatively impact our operations, damage our reputation, cause us to incur substantial additional costs, lead us to become subject to litigation, or cause us to experience other adverse consequences
3. 26Weather, natural disasters, public health crises and other unexpected events could adversely affect our operating results
4. 27Inventory shrinkage may negatively affect our results of operations and financial condition
5. 28If our systems fail to perform or are inadequate, our ability to manage our business could be disrupted
6. 29We depend on third-party delivery services to deliver products to our retail locations, fulfillment centers and customers on a timely and consistent basis, and changes in the terms we have with these service providers could adversely affect our business and financial position
7. 30If our vendors fail to provide marketing and merchandising support at historical levels, our sales and earnings could be negatively impacted
8. 31Restrictions on our ability to purchase and sell pre-owned products could negatively affect our business and financial condition
9. 32If we are unable to renew or enter into new leases on favorable terms, our earnings may be adversely affected

Risks Related to Laws and Regulations

1. 33Unfavorable changes in our global tax rate could have a negative impact on our business, results of operations and cash flows
2. 34Legislative actions may cause our general and administrative and compliance costs to increase and impact our operations and financial condition
3. 35Failure to comply with federal, state, local and international laws, regulations and statutes applicable to our business could result in an adverse impact to our business and financial condition
4. 36Litigation and the outcomes of such litigation could negatively impact our future financial condition and results of operations

Risks Related to Our Class A Common Stock

1. 37The market price of our Class A Common Stock has been extremely volatile and may continue to be volatile due to numerous circumstances beyond our control
2. 38A “short squeeze” due to a sudden increase in demand for shares of our Class A Common Stock that largely exceeds supply has led to, and may continue to lead to, extreme price volatility in shares of our Class A Common Stock
3. 39Information available in public media that is published by third parties, including blogs, articles, message boards and social and other media may include statements not attributable to the Company and may not be reliable or accurate
4. 40A large number of shares of our Class A Common Stock available for future sale could adversely affect the market price of our Class A Common Stock and may be dilutive to current stockholders
5. 41Future sales of a substantial amount of our Class A Common Stock in the public markets by our insiders, or the perception that these sales may occur, may cause the market price of our Class A Common Stock to decline

Risks Related to Financial Performance and Reporting

1. 42Our results of operations may fluctuate from quarter to quarter
2. 43We and our subsidiaries may incur additional debt
3. 44If our internal control over financial reporting is ineffective, our business may be adversely affected and we may lose market confidence in our reported financial information, which could adversely impact our business and stock price